NASCAR will be forced to transform says top antitrust lawyer as 23XI Racing files lawsuit

NASCAR is under pressure after two teams filed a lawsuit against the governing body. Jeffrey Kessler, the prominent sports lawyer representing the teams, has predicted change to the sport's structure.

23XI Racing and Front Row Motorsports filed a lawsuit against NASCAR and CEO Jim France on Wednesday. The antitrust lawsuit is partly based on NASCAR’s charter agreements. It claims that the association controls racetracks, sets restrictive rules, and uses charter agreements that the teams believe are unfair.

Kessler believes this lawsuit could force big changes in NASCAR. He said (via RACER):

"This is reminiscent for me of many sports that have gone through a transformative model...No one wanted this litigation but NASCAR didn’t really give these teams any choice — you either submit to the bully or you fight. They’re going to fight. We think at the end of the day, NASCAR’s going to have to change because that’s what the legal system is going to require.”

The co-executive chairman of Winston & Strawn also said that the teams are willing to go to court and force NASCAR to change.

"If NASCAR is willing to change, it’s got to be a significant change to make a fair system for the teams,” he said. “If they’re not willing to do that kind of a deal, then they’ll take this case all the way to a jury and a judge, and that’s why I say they’ll be forced to change," he added.

NASCAR has not yet responded to the lawsuit.

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NASCAR sued over charter agreements and fair competition

NASCAR’s charter agreement, which ensures a team a spot in every race and a share of the prize money and TV earnings, was introduced in 2016 and is one of the main focuses of the lawsuit. The previous agreement was set to expire this year and a new deal was introduced last month.

However, both 23XI Racing and Front Row Motorsports refused to sign the new agreements that run through 2031. They believe that the association operates with a lack of transparency and that the teams should be granted more influence and a permanent role in the sport.

The teams decided to take legal action after long talks over two years with no progress. They have also asked for a preliminary injunction to compete in 2025 as chartered teams in light of the lawsuit.

23XI Racing, the team owned by NBA star Michael Jordan and NASCAR driver Denny Hamlin, released a joint statement with Bob Jenkins’ Front Row Motorsports.

"Off the racetrack, we share a belief that change is necessary for the sport we love. Together, we brought this antitrust case so that racing can thrive and become a more competitive and fair sport in ways that will benefit teams, drivers, sponsors, and, most importantly, fans...No other major professional sport in North America is run by a single family that enriches themselves through these kinds of unchecked monopolistic practices," the statement said.

The teams also demand damages for losses under the previous agreements.